Council introduced two plans: one calling for a 1.85 percent rate and another for a 1.95 percent rate. The members can select one or the other or reject both at a later date.

The vote was unanimous with councilwoman El Warner absent.

Council will set a public hearing date for more discussion. That date will likely be Nov. 12, the date for council's next scheduled meeting, according to city finance director Chris Heagele. He said he'd likely confirm that date Thursday.

"It's still under review with the solicitor's office," said county director of administration Luis Campos.

An appellate court judge threw out an earned income tax for commuters in Scranton, but that tax was different from Easton's because it taxed non-residents at a higher rate than residents, according to city solicitor Bill Murphy.

Easton's would tax both at 1.95 percent, which makes it more likely to hold up under a court appeal, he said.

The tax increase would raise $400,000 to bolster the city's pension obligations.

Easton Councilman Roger Ruggles said at Tuesday's budget hearing it's not fair to charge people who work in Easton more in earned income tax than they pay where they live.

On Wednesday he agreed with the other council members to move the matter ahead.

"That way we can discuss it some more," Ruggles said after the meeting.

Panto said he would prefer to raise the tax than cut more jobs. The city has proposed cutting 14 positions and has offered employees an incentive to retire early.

Panto said commuters use many of the same services as residents, such as street plowing and emergency services.

Heagele said the tax isn't levied on top of taxes already collected by the commuter's home municipality.

Many Easton area municipalities impose a 1 percent earned income tax with 0.5 percent going to the school district and 0.5 going to one's home municipality.

Under Easton's proposal, the city would collect 0.95 percent and the remaining 1 percent would still go to the worker's home school district and municipality.

About five members of the public were present for the vote.

TAX RATES

Here's how your tax dollars would be allocated if Easton council raises the earned income tax to 1.95 percent for commuters (Municipality, percent for home municipality, percent for home school district, percent for Easton):